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Wednesday, November 07, 2007

Merrill discloses additional $6.3 Billion in CDO Exposure

by Calculated Risk on 11/07/2007 09:05:00 PM

From Reuters: Merrill reveals $6.3 billion more in subprime-CDO exposure

Merrill Lynch ... said its total exposure to risky collateralized debt obligations and subprime mortgages is $27.2 billion, or about $6.3 billion more than what the company disclosed late last month.

Merrill's larger figure is mostly because ... the world's largest brokerage disclosed $5.7 billion worth of exposure to U.S. subprime mortgages at Merrill Lynch Bank USA, a Utah-chartered industrial bank, and Merrill Lynch Bank & Trust Co., a full-service thrift.
Mike Mayo, an analyst at Deutsche Bank, has estimated that Merrill's additional write-down could top $10 billion.
Just a note: Mayo has been doing a great job.